Palladium rallies 1% ahead of Fed's minutes

Palladium prices rose nearly one percent in American trade as the dollar index rose to a four-week high, following earlier data from the US, the world's largest economy, and ahead of the Federal Open Market Committee's minutes for the July 25-26 meeting. 

As of 02:24 GMT, palladium rose 0.92% $897.75 an ounce from the opening of $889.54, while the dollar index rose 0.24% to 94.08 from the opening of 93.85, marking the highest since July 26. 

Earlier US data showed building permits fell more than expected as housing starts declined unexpectedly in July, as markets now await the Fed's last meeting minutes, at which policymakers voted to maintain interest rates at between 1.00% and 1.25%, while confirming their plan to normalize the massive $4.5 balance sheet later this year. 

Otherwise, Standard Chartered recently projected a supply deficit of 563 thousand ounces in the palladium market this year, compared to a deficit of 459 thousand in 2016. 

The bank also expected more gains for palladium prices in the next 12 months to 2014 highs.